Gary Mongiovi said:
| To answer James Ahiakpor's question: In Smith & Ricardo, price is
| regulated by production costs, with the real wage treated as more or
| less parametric, i.e. not determined by the interaction of price-elastic
| factor demand curves with given resource endowments. There is no
| presumption that market forces clear the labor market, a vital element
| of neoclassical S&D theory. 


Well, what about Say (contra Ricardo), what about Cournot, on individual
market S&D? Say's law (endorsed by Ricardo) should be an answer to the the
point that "[t]here is no presumption that market forces clear the labor
market", on the macroeconomic dimension.
 
Jean Magnan de Bornier